10. Investment properties
The investment properties held by the Group as at 31 December 2014 are as follows:
The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase,
construct or develop investment property or for repairs, maintenance or enhancements.
Valuation of investment properties
The leasehold office premises in Singapore is stated at fair value, which has been determined based on valuation performed as at
31 December 2014. The valuation was performed by Colliers International Consultancy & Valuation (S) Pte Ltd, an independent
valuer with a recognised and relevant professional qualification and with recent experience in the location and category of the
property being valued. The valuation is based on the Direct Comparison Method that makes reference to market evidence of
transaction prices for similar properties in the open market.
The workers’ dormitory in Singapore is stated at fair value, which has been determined based on valuation performed as at
31 December 2014. The valuation was performed by Suntec Real Estate Consultants Pte Ltd, an independent valuer with a
recognised and relevant professional qualification. The valuation is based on the Discounted Cash Flow Method. The cash flow
projection is based on an analysis of the cash flows of rental revenue with provision for appropriate occupancy, rental and
inflation rates over the remaining lease term of 11 months. The projected net income of the property is derived by deducting
from the gross income, outgoings such as land rent, repair and upkeep and other operating expenses. As at 31 December 2014,
the projected net income has not been discounted as the effect of discounting is not significant.
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
Group
2014
2013
S$’000
S$’000
Balance sheet:
At 1 January
8,650
11,430
Net loss from fair value adjustments recognised in profit or loss
(4,300)
(2,780)
At 31 December
4,350
8,650
Income statement:
Rental income from investment properties:
- Minimum lease payments
10,668
10,139
Direct operating expenses (including repairs and maintenance) arising from:
- Rental generating properties
(3,254)
(3,080)
Description and location
Existing
use
Tenure
Unexpired
lease term
Office premises, 80 Marine Parade Road,
#09-07, Singapore (99 years lease)
Office
Leasehold
64 years
Workers’ dormitory, 200 Hougang Avenue 3,
Singapore (3+3 years lease)
Dormitory
Leasehold
11 months
Hock Lian Seng Holdings Limited
Annual report 2014
71
